Artiza Networds,Inc.
6778・Standard Market・Electric Appliances
Business
Artiza Networks, Inc. was founded in 1990 and is listed on the Tokyo Stock Exchange Standard Market as a company specializing in communication test solutions. The company operates two business segments: the Merchandise Sales Segment, which develops and sells communication measurement devices called protocol simulators (such as DuoSIM-5G) for the mobile communications field, as well as network monitoring devices like etherExtractor for the fixed-line communications field; and the Service Segment, which handles communication testing services and maintenance. Its main customers are telecommunications carriers and communication equipment manufacturers such as NTT DOCOMO, Fujitsu, and SoftBank, and the group—including its subsidiary C2M Co., Ltd. (Shī Tsū Emu)—supports the improvement of quality and reliability of communication infrastructure.
Business Model
In the Merchandise Sales Segment, the company develops and sells 5G-compatible protocol simulators and network monitoring equipment in-house, meeting the R&D and quality assurance needs of telecom carriers and equipment manufacturers. In the Service Segment, the company provides testing service outsourcing, maintenance, and consulting utilizing this product lineup, securing stable recurring revenue. In FY2025 (ending July 2025), Service became the earnings pillar with net sales of ¥1,255 million and operating profit of ¥371 million, forming a structure that covers the upfront development costs of Merchandise Sales.
Company Strengths
Since beginning proprietary product sales in 1991, the company has continuously developed measurement equipment supporting each generation of communication standards, including SS7, W-CDMA, LTE, and 5G. In 2019, it commercialized the 5G test system DuoSIM-5G, with a delivery track record to domestic telecom carriers. Although order intake for Merchandise Sales in FY2025 (ended July 2025) slowed to ¥1,241 million (74.0% of the prior period), over 30 years of technical accumulation forms a barrier to entry.
In FY2025 (ended July 2025), the Service Segment achieved net sales of ¥1,255 million (up 9.6% year on year) and operating profit of ¥371 million (up 211.9% year on year). Combined with the effect of fixed cost reductions, the operating profit margin reached approximately 29.6%. The stable revenue model combining contracted testing services, maintenance, and DuoSIM-5G rental is functioning well, becoming a revenue pillar that offsets losses in Merchandise Sales.
Net assets stood at ¥6,561 million at the end of FY2025 (ended July 2025). During the period, the company invested surplus funds in highly safe securities such as government and corporate bonds, recording interest and dividend income of ¥157 million. The balance of investment securities increased by ¥3,365 million, accounting for the majority of total fixed assets of ¥4,464 million. Financial stability is high, and the company maintains a structure capable of funding continued R&D investment from its own resources.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥4,543 million in FY2022 and is projected to decline for a fourth consecutive year (full-year FY2026 forecast: ¥2,575 million). For the cumulative nine months of Q3 FY2026 (ending March 2026), revenue was ¥1,862 million (down 12.0% year on year) and operating profit was ¥191 million (down 22.8%). In the Merchandise Sales Segment, the recovery in existing customers' R&D investment for 5G has been delayed, leading to a decline in sales of the flagship product DuoSIM-5G. In the Service Segment, although rental and maintenance income increased, a decrease in orders for outsourced evaluation work resulted in a slight revenue decline. As an external factor, telecom carriers' continued restraint on capital expenditure has persisted, and overseas merchandise sales also fell short of order targets. On the other hand, comprehensive income improved significantly to ¥442 million due to an improvement in valuation differences on investment securities (from ¥-183 million to ¥-19 million). The full-year dividend forecast has been revised upward to ¥25 (from ¥20 in the previous fiscal year).
Growth Strategy
Building the next growth cycle around four pillars: 5G-Advanced/6G, overseas expansion, and new AI-RAN/NTN domains
As the number of domestic 5G subscriptions surpasses 100 million and industry focus shifts toward 5G evolution and 6G, the Company continues developing compatible products. While awaiting the recovery of existing customers' R&D investment, it aims to maintain a first-mover advantage with products supporting next-generation standards. However, domestic investment trends remain uncertain even in the fourth quarter.
Overseas Merchandise Sales did not result in any orders during the cumulative nine months ended in the third quarter, falling short of initial expectations. Market development activities continue, but no concrete orders have been secured yet, and progress remains delayed.
AI-RAN has progressed from proof-of-concept to implementation and commercialization phases following the establishment of an alliance. The Company aims to capture demand accompanying the full-scale commercialization of NTN services utilizing satellite communications. Development of products and cultivation of business opportunities in these areas continue.
Revenue from the DuoSIM-5G Rental & Maintenance Service increased during the cumulative nine months ended in the third quarter, confirming steady growth driven by the acquisition of new contracts. Recovery of orders for evaluation outsourcing services remains a challenge, but the Company continues to improve profitability by reducing SG&A and other expenses.
Last updated: July 17, 2026